Audit Suggestions Unheeded, Severson Charges Election '85

October 28, 1985|by JOE NIXON, The Morning Call

Thomas Severson, Republican candidate for Easton City Council, criticized his Democratic opponents in a press conference last week, charging they have refused to take corrective action suggested by audits over the past several years.

Severson also announced at the conference, held just inside the doors of City Hall on Friday morning, that he and fellow GOP candidate Robert Derringer have challenged Democratic incumbents Edward Kennedy and William Houston to a debate at noon tomorrow in Centre Square.

Houston said Friday afternoon his job as an assistant principal at Shawnee Intermediate School in Forks Township would not allow him to attend the debate. He added he also thought is was too late in the campaign for such an event.

Kennedy said he would be out of town tomorrow, but felt the same way as Houston. He said he thought the debate represented "desperation" tactics on the part of his GOP opponents. He said he thought the debate issue should be discussed with his and Houston's campaign committee before a final answer is given.

Severson said the audit reports noted the collection of business privilege taxes and license fees have been cited as inadequate in the past four years and that the city has "failed to charge the required interest and penalties and (is) unable to determine whether all the businesses in the city have filed a return."

The occupational privilege tax has been commented on in 1982-84 reports, Severson said, "which range from incorrect returns being filed to the very serious problem of not being able to account for the cash received and cash deposited."

Money from various other city departments, including police and fire, has not been properly accounted for, according to the audit reports, Severson said.

Severson said city payroll accounts were also commented on in 1981, 1983 and 1984.

"Easton may be facing a financial crisis with the pending cutback of federal funds," Severson said. "In spite of this, my opponents have refused to take corrective action to collect monies due to the city where real financial gain is possible."

Severson said Houston and Kennedy have said planning for the loss of federal revenue sharing and the "problem with the zoning board" is "not their job."

The 40-year-old College Hill businessman added, "I am sure they again will say this is not their job. We say they are copping out on the responsibility and trust given to them by the citizens of our community."

Severson said his opponents have deceived the citizens and "robbed us of our confidence in our government." He said that, if elected, he will form a committee to work with the various city departments to make sure the city was getting all its due revenue. He said he is focusing on those issues that have "raised their head in some instances for four years and nothing has been done about it."

City Business Administrator Robert Rush, when asked to comment on the substance of Severson's remarks on the audits, said the auditor's recommendations were "very, very minor" in nature and included "nothing significant."

Rush said City Council commissions and approves payment for the yearly audits, but it is not council's responsibility to "safeguard the city's assets." That responsibility, he said, belongs to the administration

Rush said he was "baffled" that Severson would see anything significant in the auditor's statements.

Rush said he has gone over past management letters with Councilman Thomas Goldsmith, who heads council's administration committee, and with City Council in general.

"I do believe things are moving along smoothly and as well as can be expected," Rush said. He added some of the suggestions are to meant to fine- tune the city's accounting procedures and make the yearly audit easier to perform. He said it was not always the city's job to change things to make an audit easier to do. Those changes, he said, may not be cost-effective at times.

As an example of working on problems, Rush said the city is making large strides in computerizing the areas of business privilege and occupational privilege taxes. He said there has been no misuse of funds.